<\/p>\n
Leading blockchain forensics firms dispel myths surrounding role of crypto in terrorist financing<\/p>\n
Elliptic is the latest on-chain research firm to dispel claims that cryptocurrency is a major source of funding for Hamas, the Palestinian terrorist organization currently at war with Israel.<\/p>\n
In an Oct. 25 report<\/a>, Elliptic asserts \u201cthere is no evidence to support the assertion that Hamas has received significant volumes of crypto donations,\u201d contradicting recent statements from Democratic senator, Elizabeth Warren<\/a>, and reporting from the Wall Street Journal<\/a> (WSJ).<\/p>\n Earlier this month, WSJ claimed that Hamas had raised around $134M worth of cryptocurrency since 2021. Warren cited<\/a> the report last week in calling for the Biden administration to curb the use of crypto by Hamas and other militant groups, and to \u201caddress the serious national security threats posed by crypto\u2019s use to finance terrorism.\u201d<\/p>\n However, on-chain researchers have failed to corroborate the claims of WSJ and Warren, with Chainalysis, TRM Labs, and now Elliptic finding that digital assets have played a minimal role in facilitating funding to Hamas.<\/p>\n <\/a><\/p>\n \u201cOver the past two weeks, politicians and journalists have portrayed public crypto fundraising as a significant source of funds for Hamas and other terrorist groups, but the data simply does not support this,\u201d Elliptic said. \u201cNo public crypto fundraising campaign by a terrorist group has received significant levels of donations, relative to other funding sources\u2026 A full understanding of blockchain analysis and the context of any analysis is needed when using these insights to draw conclusions.\u201d<\/p>\n The firm said it has engaged with WSJ and Senator Warren\u2019s office \u201cto correct misinterpretations of the level of crypto fundraising by Hamas\u201d and \u201censure that the relevant parties have a proper appreciation of the complexities and nuances of analyzing these wallets.\u201d<\/p>\n Elliptic said Hamas first began soliciting<\/a> cryptocurrency funding in 2019, with the donations peaking in May 2021. However, Hamas suspended<\/a> all public-facing digital asset fundraising in April of this year, with the group citing \u201cconcern about the safety of donors\u201d amid efforts from Israeli authorities to identify and punish donors.<\/p>\n \u201cThis illustrates the weakness of crypto as a terrorism fundraising tool,\u201d Elliptic said. \u201cThe transparency of the blockchain allows illicit funds to be traced, and in some cases linked to real-world identities.\u201d<\/p>\n Elliptic reported that GazaNow, a pro-Hamas news organization, raised $21,000 worth of digital assets in the largest Hamas-linked crypto financing campaign since the Oct. 7 terrorist attack on Israel.<\/p>\n However, GazaNow has since struggled to mobilize the funds. Around $2,000 worth of digital assets were frozen after being sent to a centralized exchange. A further $9,000 worth of the USDT stablecoin was frozen<\/a> by its issuer, Tether.<\/p>\n Start for free<\/a><\/div>\n A recent report<\/a> from TRM Labs similarly recounts the persistent freezing of crypto-based fundraising efforts from Hamas by Israeli and U.S. authorities in recent years. TRM said the events demonstrate the sophistication of \u201claw enforcement\u2019s ability to track, trace and seize funds,\u201d TRM Labs said.<\/p>\n Last week, the U.S. Treasury Department also sanctioned a wallet associated with the Hamas-affiliated Buy Cash Money And Money Transfer Company. Coinbase\u2019s director, Conor Grogan, tweeted<\/a> that the sanctioned wallet held just $11 worth of digital assets and had not transacted in 18 months.<\/p>\n By contrast, Elliptic said crypto-based fundraising efforts to support Israel have flourished, with Crypto Aid Israel receiving $185,000 in 12 days.<\/p>\n Elliptic discussed the origins of WSJ\u2019s recent claim that Palestinian terrorists are raising tens of millions of dollars through crypto.<\/p>\n In July, the National Bureau for Counter Terror Financing of Israel (NBCTF) issued<\/a> a seizure order for wallets associated with Palestinian Islamic Jihad (PIJ), a terrorist organization. Elliptic said the wallets received more than $93M since 2020, but noted it is not clear if all of said funds were directly attributable to PIJ and other militants.<\/p>\n \u201cIt is likely that some of the wallets listed by the NBCTF belonged to small service providers such as brokers that were used by PIJ,\u201d Elliptic said. \u201cCareful and detailed understanding of blockchain analysis is needed whenever approaching a nuanced and sensitive topic such as this, and the full context of any analysis should be provided by those using these insights.\u201d<\/p>\nTerrorist financing<\/h2>\n
\n
Opaque data<\/h2>\n